Real Estate Sector has registered a positive outlook on RBI's measures to introduce capital in the market. From an INR 10,000 Cr grant for the NHB and reduction in Repo Rate, let's take a look at all the steps taken by RBI revive the economy.

1. Repo Rate: Reduced to 4.4%

Encourage Banks and NBFCs to lend money from the government, thus an attempt to push liquidity towards the market.

2. Reverse Repo Rate: 3.75%, reduced by 25 basis points

Discourage banks from depositing miscellaneous funds with RBI.

3. May place a cap on Reverse Repo Rate:

A cap fixed on the reverse repo rates by the RBI will prevent Banks and NBFCs from harboring funds.

4. INR 10,000 allocated to NHB (National Housing Bank)

NHB is an entity owned by the Government of India and is the apex body for housing-related financing.

5. Relaxation of NPA norms

NPA stands for Non-Performing Asset, an asset essentially a type of credit or loan which generates revenue for the lender bank or NBFC (Non-Banking Financial Company). If a lender defaults on the repayment of the loan for over 90 days, then the asset (loan/account) is considered an NPA.

RBI has extended the default period to 180 days.

6. Extension of Commencement for Commercial Operations (DCCO) by one year

RBI has further allowed NBFCs to grant an additional time of 1 year to commercial real estate projects which have been delayed due to the lockdown. This additional one year relaxation period will be given over the top of the existing permitted one-year extension period.

Source :

Referred from, IANS, Moneycontrol, Published on FRIDAY, APRIL 17, 2020 - 14:11.